Although it sounds a bit stubborn, it is hard not to mention it. It is clear that the world, or rather the human beings living there, are going through a complex process towards a new order. The microscopic virus has reminded us how fragile we are as living organisms and how fragile are the systems (such as health care) that we have designed and built. The “new normal,” as many have termed it, is imagined as the product of a dramatic restructuring of traditional economic and social systems. The consulting firm McKinsey recently defined 5 stages on the road to the new normal: resolution, resilience, return, re-imagining and reform.
1. Resolution
Globally, plans were deployed to cope with the crisis. Many entrepreneurs developed plans to ensure business continuity and the security of their employees. Remote work became the new way of operating and educational institutions transformed themselves to provide their services online.
Resilience
A health crisis becomes an economic crisis and to cope with it it is necessary to be resilient and take decisions to ensure sustainability of the company. Despite the economic packages and stimuli provided by governments, there are multiple industries that are having liquidity problems. However, it is not all about economics. We know that the social approach is key and a recent GFK Peru study reminds us, stating that “56% of Peruvian consumers want to know how brands will contribute to the future”.
3. Return
The return of companies to operation after a severe cessation such as that caused by the quarantine will be a challenge. Especially considering that companies are living organisms that depend on interactions with other organizations. This implies that companies will have to reactivate its entire value chain. A weak point in your value chain can mean the difference between surviving or not. This is where it becomes clear for companies to look for more sustainable suppliers that can quickly accommodate the new conditions.
4. Re imagination
This crisis reveals vulnerabilities, but at the same time it puts pressure on organizations to move with speed and re-invent. Such re-invention can translate into competitive advantage and exponential growth. Undoubtedly, technology can be a great ally, but the most important thing is to maintain a systemic vision, a relevant purpose and use economic, social and environmental sustainability criteria. In this way, a more resilient and efficient business can be built that will also be attractive to a more demanding market, a market that is tendentially growing.
5. Reform
It will seek to answer the question “How were we so vulnerable?” Governments, supported by society, are expected to promote measures to reduce the risk of a similar event happening again. Business leaders should prepare for changes to policies and regulations, many of them with a focus on sustainability. This, on the one hand, will make it possible to build new business models and, on the other, will force more traditional businesses to adapt to the new context.
These 5 stages will not only be highly relevant to the path leaders must take to navigate uncertainty in the short term, but will also influence their strategic decisions in the long term. In the same way that the planet's inhabitants have had the opportunity to think deeply about what is most important in your life. (health, family, friends, peace of mind, security, etc.), it is expected that a large part of global entrepreneurs will redefine their priorities and place sustainability and a systemic vision at the center of their business.
